Calibre Mining Corp. (TSE: CXB) (OTCMKTS: CXBMF) is going forward with the necessary preparations for its upcoming merger with Equinox Gold Corp. (TSE: EQX) (NYSE American: EQX).
The company announced on Friday that it’s mailed its management information circular for the upcoming shareholder meeting.
The meeting will take place on Thursday, April 24, at 10:00 a.m. PST at the offices of Cassels Brock & Blackwell, Suite 2200, RBC Place, 885 West Georgia Street in Vancouver.
Calibre security holders have the option of going in person but can also participate in the live webcast at meetnow.global/MZLUU6Z. However, only those attending in person and entitled to vote can cast their votes during the meeting. Security holders who join via webcast will not have voting privileges.
During the Meeting, Calibre security holders will consider and may pass a special resolution to approve the arrangement under part 9, division 5 of the Business Corporations Act. The arrangement will facilitate the merger, wherein Equinox will absorb Calibre Mining as per the agreement signed on Feb. 23.
The arrangement will exchange each Calibre share for 0.31 of an Equinox common share. If completed, the transaction will result in existing Equinox shareholders owning approximately 63 per cent of the combined company, while former Calibre shareholders (including those who held restricted share units and performance share units) will own about 37 per cent.
The Supreme Court of British Columbia issued an interim order authorizing Calibre to proceed with the meeting. Furthermore, the circular includes a copy of the order. If Calibre security holders approve the arrangement, the next step involves applying for a final court order approving the arrangement.
Read more: Calibre Mining values women’s contributions to its operations
Read more: Equinox Gold acquires Calibre Mining for $2.6B
Equinox and Calibre combination creates major diversified gold producer
On March 25, 2025, the commission of competition issued an advance ruling certificate (ARC) under section 102 of the Competition Act. This would confirm that it does not intend to challenge the transaction. This ARC satisfies the Canadian Competition Approval closing condition for the arrangement. If all conditions are met or waived, the company expects to close the arrangement by the end of Q2.
Combining Calibre and Equinox will create a major diversified gold producer in the Americas, with the potential to produce over 1.2 million ounces of gold annually from mines across five countries. The merger will also establish the second-largest gold producer in Canada. Additionally, the Greenstone Gold Mine and Valentine Gold Mine are expected to reach a combined annual output of 590,000 ounces at full capacity.
The combined company expects to generate substantial free cash flow, driven by increased production at record-high gold prices. This financial strength will allow for rapid deleveraging while supporting future growth. Furthermore, production growth will come from the ramp-up of the Valentine Gold Mine and a pipeline of development and expansion projects.
With greater scale, lower risk, and superior free cash flow, the merged company presents revaluation potential compared to its peers. An industry-leading team will guide this growth. This includes Ross Beaty, Blayne Johnson, and Doug Forster of Featherstone Capital serving on the board of directors. Four Calibre directors will also join the board. For example, Darren Hall, president and CEO of Calibre, will become president and chief operating officer, overseeing all combined operations.
Read more: Top Calibre Mining shareholder raises issues with the Equinox merger
Read more: Calibre Mining beats updated gold production guidance with 242,487 ounces
Proxy voting deadline is 10a.m. PST
Calibre’s board of directors has unanimously determined that the arrangement serves the best interests of the company. It also recommends that security holders vote for the arrangement resolution.
Furthermore, the company urges security holders to read the circular in full and submit their votes as soon as possible. Security holders should follow the instructions provided with their proxy or voting instruction form, which was mailed alongside the circular.
The deadline for proxy voting is 10:00 a.m. PST on April 22, 2025.
.
Calibre Mining is a sponsor of Mugglehead news coverage
.
